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Genex Power Ltd (GNX.AX) Quarterly Activities Report
Sydney, Australia, Jan 27, 2022 - (ABN Newswire) - Genex Power Limited (ASX:GNX) is pleased to provide the following update on the Company's activities and performance for the quarter ending 31 December 2021 (Q2 FY22 or the Period), a period during which the Company made significant progress on its first large-scale battery storage project with the signing of two key agreements with Tesla Motors Australia Pty Ltd (Tesla) for the Bouldercombe Battery Project (BBP).
- Supply Agreement with Tesla signed for the supply of a 50MW/100MWh battery for the BBP (refer ASX Announcement dated 1st October 2021);
- Signing of an Autobidder Offtake Agreement with Tesla to operate the BBP utilising Tesla's proprietary real-time trading and control platform, Autobidder. As a key part of the agreement, Tesla will provide a minimum level of contracted revenues to support project financing while also providing exposure for Genex to merchant revenue upside from significant pricing events (refer ASX Announcement dated 9th December 2021);
- Approval of Generator Performance Standards and signing of a Bi-directional Service Provider Connection and Access Agreement with Powerlink Queensland for the BBP (refer ASX Announcements dated 7th and 23rd December 2021);
- Construction at the Kidston Pumped Storage Hydro Project (K2-Hydro) continued during the Period. Key work during the quarter included turbine model tests, completion of the Oaks Rush Accommodation Village and preparation works for the commencement of underground works;
- During the Period, the Kidston Solar Project (KS1) generated 31,419MWh of renewable energy and the Jemalong Solar Project (JSP) generated 34,856MWh of renewable energy, delivering a combined revenue of $5.8M for the Period;
- Genex finished the Period in a strong cash position, with cash at bank of $36.6M as at 31 December 2021; and
- Mr Michael Addison retired from the board (refer ASX Announcement dated 18th October 2021), while Mr Simon Kidston will transition from the position of Executive Director to Non-Executive Director in CY2022 (refer ASX Announcement dated 15th November 2021).
Commenting on the Q2 FY22 performance, Genex CEO, James Harding said:
"During the quarter, Genex signed two significant agreements with Tesla to progress the Bouldercombe Battery Project, and concluded its connection arrangements through the signing of a Connection and Access Agreement with Powerlink. The Bouldercombe Battery Project is set to be one of the first standalone large-scale Battery Energy Storage Systems in Queensland. The unique integration of Tesla's Megapack battery technology and a revenue sharing arrangement utilising Autobidder will reduce the complexity of the project. Importantly, the structure of the Agreement provides a minimum level of contracted revenues to support project funding, while allowing Genex to retain significant merchant upside.
Works continued at the 250MW Kidston Pumped Storage Hydro project in accordance with the construction schedule, with a number of significant milestones achieved during the Period including completion of the accommodation village, model testing of the turbines, and the commencement of the Main Access Tunnel works. We will continue to work closely with our team of project partners, notably John Holland, McConnell Dowell and Andritz to deliver the project and provide a large-scale energy storage facility for the National Electricity Market.
Our two solar farms, Kidston Solar 1 and Jemalong, are continuing to perform well despite poor weather conditions owing to a La Nina summer. We are particularly pleased with the strong merchant electricity and LGC prices which have contributed to group revenue during the Period.
We continue to progress our portfolio of renewable energy and storage development projects and I look forward to updating the market in the coming period on the progress of our Bouldercombe Battery Project and Kidston Wind project.
Genex remains focussed on delivering a diverse portfolio of renewable energy and storage projects in the Australian market, positioning ourselves as Australia's leading listed renewable energy company.
Finally, I would like to thank Michael Addison for his outstanding contributions to Genex as a cofounder in 2014, as well as in his roles as Executive Chairman, Managing Director, and more recently as a Non-Executive Director. I wish Michael well in his retirement. I would also like to thank cofounder Simon Kidston for his tireless efforts as Executive Director over recent years. His commitment to the Company has been invaluable and l look forward to continuing to benefit from Simon's experience as he transitions to a Non-Executive Director."
*To view the full Quarterly Report, please visit:
About Genex Power Ltd:
Genex Power Limited is focused on developing a portfolio of renewable energy generation and storage projects across Australia. The Company's flagship Kidston Clean Energy Hub, located in north Queensland, will integrate large-scale solar generation with pumped storage hydro. The Kidston Clean Energy Hub is comprised of the operating 50MW stage 1 Solar Project (KS1) and the 250MW Kidston Pumped Storage Hydro Project (K2-Hydro) with potential for further multi-stage wind and solar projects. The 50MW Jemalong Solar Project (JSP) is located in NSW and provides geographical diversification to the Genex Power Limited portfolio. JSP was energised in early December 2020 and commissioning is now underway. Genex is further developing its energy storage portfolio via the early stage development of a 50MW/75MWh standalone battery energy storage system at Bouldercombe in Queensland. With over 400MW of renewable energy and storage projects in development, Genex is well placed as Australia's leading renewable energy and storage company.
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Genex Power Ltd
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